it was the latest fallout from the firestorm of allegations that murdoch tabloids hacked into phones of celebrities, royals and even murder victims. we have a report from gary gibbon of independent television news. >> reporter: for decades, he's loomed over british politics. feted by politicians, rely denied his wishes. but today, parliament rose up as one, all three main parties united, telling rupert murdoch he could not expand his media ownership here, right now. and he buckled. in a statement on their takeover plans, news corp said that it was too difficult to progress in this climate, but that news corp reserves the right to make an offer at a later date. >> i think this is the right decision, i've been saying that this company clearly needs to sort out the problems there are at news international, at the "newof the wld." that must be the priority, not takeovers, so the right >> reporter: it's a huge blow for james murdoch, third in command at his father's company. buying b-sky-b was one of news corp's biggest projects long planned and potentially very lucrative. >> it feels lik